While banks and brokers have sounded the alarm over the freezing of many files, François Villeroy de Galhau, governor of the Banque de France, announced that the calculation of the attrition rate will remain unchanged.
Bad news for future buyers ? Designed to protect consumers from excessively high rates and limit the risk of excessive indebtedness wear ratecorresponds to maximum interest l corresponding to which financial institutions have the right to lend. The latter, modulated by the Banque de France, will be revised at the end of September 2022. The purpose of this maneuver? Try to free the marketwhile these rates are currently too low compared to property prices, leading to many loan rejections. A situation pointed out by several professionals in the real estate and banking sectors: “The notaries warned about three weeks ago. The property world is paying attention, the CEO of Crédit Mutuel has warned. Bankers alert. It’s not the brokers, it’s the whole real estate world, it’s all the borrowers”, paralyzed Bérengère Dubus, secretary of credit intermediaries, to BFM Business.
Problem, François Villeroy de Galhau, Governor of the Banque de France, announced that the formula for calculating the wear rate will not be changed to judge that “real estate credit in France is healthy“on RTL, Friday 16 September 2022.”What we will do at the end of this month is apply the existing rules, which will lead to a proportionate increase in this ceiling rate“, he indicated. And to continue to give more details about this strategy:“This will make it possible to decide the cases of more difficult access to property credit than there may have been in recent weeks.”
Also read: “Blocked” rents: are you one of the French whose rents can no longer rise?
Real estate credit: “We do not see a wave of excessive indebtedness”
Confidently, François Villeroy de Galhau told our colleagues that he did not see “no wave of over-indebtedness today”. And to clarify:The downward trend in cases of over-indebtedness continues for mortgage loans. […] I also note that almost more than 95% of the French have fixed-rate mortgages, that is, they are not affected by the rise in interest rates.” A security that is not necessarily shared bys professionals in the sector.